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Who Is Where on The Roller Coaster Ride?


As we head into 2H09, and the ever-promised recovery, just what is happening in some key sectors where the growth and sustainability of the semiconductor industry reside?

According to a recent BusinessWeek report, looking at PC sales, Intel reported positive 2Q09 sales on PCs, beating analysts forecasts by almost US $750 million!  Intel's gross margins for 2Q09 were 50.8%.  Further supporting the longevity of this uptrend, is the confirmation that inventory levels are healthy with excess build up alleviated and returned to normal refill levels.

While some individual OEMs, such as Dell, are still feeling a pinch (okay, more than a pinch) due to a conservative corporate spending mentality, there's hope that with the expected October release of Microsoft's new operating system (OS), those sales will rebound. 

Graphics chips are not so lucky.  Still underperforming with shipments continuing to trend down by roughly 12% YoY, recovery is expected to initiate in 3Q09 and continue through Y10, according to analysts and market researchers, as reported by EETimes Europe.  These positive graphic chip forecasts are dependent upon the strength of the PC and portable device growth trends, as well as the new OS from both Apple and Microsoft.

Finally, also along the lines of portable devices, MEMS continues to be an aggressively bullish sector in the semiconductor industry.  Growth continues to be strong with Y09 expected to come in at 6.4% compared to the overall semiconductor revenue expected to come in down 23% and similarly negative predictions for consumer and wireless sectors, according to iSuppli

Buckle up, the ride has only just begun!

Lisa Ann Cairns, Ph.D.
Written on Friday, 17 July 2009 00:00 by Lisa Ann Cairns, Ph.D.

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